Flattening Yield Curves and what this means for Real Estate

Flattening Yield Curves and what this means for Real Estate

Real Estate Broker · Southern California · Member since 2018 · 10 posts · 3 votes

So with the bond yield curve is flattening what do you all think this means for the real estate market? What about some of the other leading indicators in your local markets?

My Opinion:

As the yield curve flattens it is an indication that the cost of money is going to be higher.Based on mortgage statistics that the median new mortgage has an LTV of 95%, people are still leveraging their homes quite a bit.In order for the real estate and financing markets not to go stagnant they will need to come up with increasingly ‘creative' ways to finance houses with average home prices that continue to climb otherwise home buyers will no longer be able to afford purchasing houses.While all of the indicators don't look exactly how they did in 2007 it is quite scary to see that many of them are quite similar.Just my two cents.

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